Chico's, Collective Brands slump; Genesco, Zale up

AndriaCheng

NEW YORK (MarketWatch) -- Retail stocks were mixed on Tuesday after the U.S. economy grew at a slower-than-expected pace in the third quarter. While the cut in corporate inventories was the main culprit, consumer spending, about two-thirds of the U.S. economic growth, also was revised slightly lower to a 2.3% increase from an original reading of a 2.4% gain. The S&P Retail Index rose 0.1%. Women's clothing retailer Chico's FAS Inc.
CHS, -1.04%
shares fell 12% after its third-quarter profit fell short of expectations, hurt by increased discounts. Payless shoe chain parent Collective Brands Inc.
pss
dropped 7.6%. It swung to a third-quarter loss and said it expects fourth-quarter gross margin to remain under pressure. Among the gainers, Journeys shoe chain parent Genesco Inc.'s
GCO, -2.01%
shares jumped 7%. It reported a better-than-expected third-quarter profit and raised its outlook for the year. Zale Corp.
ZLC, +0.27%
shares rose 7.6% after the jewelry retailer narrowed its loss on higher sales.

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